I've been trying to get into PE for the last 7 years with no success despite an Ivy League MBA and pre-MBA investment banking experience (but no pre-MBA experience). I've found it incredibly hard breaking in. I went and got some operating experience in the hopes that they would see some value in that, but to no avail. Anyway, I now want to try one more path, and that is to see if I can do independent consulting work for a PE fund on a deal or two so at least I'm building some transaction experience that would get me closer to landing a PE gig.
Now I know these independent consulting jobs are common with hedge funds because you essentially research ideas for them, but what about PEs? What kind of consulting work would they find value in? What should I offer? What are they typically limited on bandwidth on that they could potentially have an outside consultant do?
I would like to approach several PEs with a proposition but I want to better understand what areas they need most help with that a consultant can provide.
Thanks!
That was meant to say no pre-MBA PE experience.
What's your background? Most PE DD workstreams will be handled by consultancies / accountants / lawyers where the firm has existing vendor relationships -- it would be tough to justify why they should go with you. At your seniority, I think it is unlikely a PE firm would bring you in for ad-hoc DD support, unless they are very small or you have a particularly niche / specialized background that could be helpful for certain transactions
Outside of DD, you could always source a deal, but I think it would need to be one where you are one of a very small number of people who can "unlock" the deal (i.e. the seller is family, someone you used to work closely with, you have some kind of other proprietary angle). The risk of just cold-calling businesses to see if they'll speak with a PE firm you don't work for is that you fail to come off as credible, or are otherwise cut out of the loop.
Have you ever considered a search fund? It would take advantage of your operating experience and give you exposure to all phases of the sourcing / execution process. This would provide an experience quite analogous to PE , albeit without the "prestige" of an established firm (though if your deal goes well, you could always exit to someone like that!)
My background has always been in finance, so I started in investment banking, then spent a couple years in asset management (but didn't like it) and then went into corporate finance at a couple high-growth firms (which exposed me to the operating environment). So I'm not really the "consultant" type as it's known in the industry. What I really meant to say is I want to do independent ad hoc projects for PE firms (in the deal screening/investment underwriting area) as a backdoor way of joining an investment team at a PE fund.
Thanks for the color. I think it will be challenging to add too much value with the corporate finance functional background in particular, given the overlap with PE investment professionals' skillsets. Always a possibility to take on a controller / FP&A / corp dev role at a portfolio company, but it's quite unlikely this would lead to an investment professional role.
Thanks for the input!
I don't know about independent consulting, but there are some firms like Blue Ridge Partners that specifically do PE portfolio company strategy. There would be an opportunity to lateral at the MD level to an operating partner role.
I think you need to have one of these questions (preferably both) locked down already - "What can I offer" and "what do they need".
Each firm is going to be limited on bandwidth in some specific area, there isnt some investment memorandum preparer global shortage. One firm may need extra hands because someone is out for two months for health reasons, or an associate just lateraled to another shop suddenly..
You're going to have to answer "what can I provide without any training or onboarding that is better than just working their 4 associates an extra 10 hrs/week." The answer is probably nothing, to be brutally honest.
If you find a lower MM / boutique shop that cant afford an associate, they might be willing to bring you on at a fraction of the cost. So I would start trying to network there.
Thanks for your input and candor.
I am currently working as independent CRO for a portco of a very large MM PE firm (the MD/partner hired me). For this you need 10+years top notch track record including having started off at MBB.
Sorry to say but you do not qualify for that at all.
For deal sourcing / closing they have internal people. No options here either (or ask yourself, what would you REALLY bring to the table that makes any differnce. Nothing I am afraid).
The only option I could imagine for you is getting a gig as underpaid freelance workhorse for commodity type of work.
I would forget this path at all given your situation.
Your response sounds realistic and practical, thank you. I guess there isn't a worthwhile path available.
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